Positive quarter, revenue up 87% year on year
ASX Announcement 30 October 2018
Q1 FY19 Highlights
- Net operating cashflow $77k for Q1
- 87% increase in revenue Q1 FY19 compared to Q1 FY18
- 47% increase in average unit sales revenue for Q4 FY19 year on year
- Strong organic sales ahead of busy Christmas retail period
- Innovation continues with urban commuter products slated for launch in early 2019
Cycliq Group Ltd (ASX:CYQ) has released its Appendix 4C Quarterly Report for the quarter ending 30 September 2018.
Strong organic direct to consumer and channel partner sales post the launch of the new range of ‘Connected Edition’ products in FY18 have seen strong and stable revenues during Q1 FY19 at $1.59M, up 87% compared to Q1 FY18 and 15% higher than the previous quarter (Q4 FY18). This is attributed to an ongoing improvement in the average unit sales value (up 47% to $230 compared to $157 in Q1 FY18), and increased unit sales volume, although Q1 is traditionally a quieter period leading in to the strong retail buying ahead of Christmas that commences in October and bolsters Q2 results.
“Cycliq is continuing to show sustained quarterly sales growth as well as a significant uplift in unit margins. We are going from strength to strength as the Cycliq brand becomes recognisable among cyclists all over the world,” said Executive Chairman Chris Singleton.
Rigorous inventory management throughout the quarter ensured that the stock purchases could be made without the need for the trade finance facility to be drawn against.
The move to drive higher margin and improved product innovation continues with manufacturing operations for new commuter products executed with joint venture partner Glory Horse. New products aimed specifically at the urban commuter market are well advanced in pre-production and are scheduled for release in early 2019.
Q1 sales continued steady at 6,928 units with ongoing demand from direct to consumer channels and retail partners maintained in Q1, ahead of an expected strong Q2 supported by direct to consumer retail promotion in line with Black Friday and Cyber Monday and strong channel commitments ahead of Christmas.
“Cycliq is looking forward to the Black Friday sales period in the United States as well as the lead up to Christmas. Our Cycliq cameras are the perfect price point for a Christmas gift and we will be focusing our marketing activities on driving sales during this important promotional period,” said Mr Singleton.
Our mission
Our mission is to make cycling safer and give you peace of mind when you’re on the bike.
If road users think there’s a chance they’ll be recorded, there’s less chance they’ll do something dangerous. And if things do go wrong, you’ve got the evidence to show what happened.
As cycling increases in popularity all over the world, so do the combined dangers of congested roads, poor
cycling facilities and bad behaviour from all road users (cyclists and motorists alike).
After one close encounter too many on the roads of Perth, Western Australia, our founder Kingsley Fiegert
decided that enough was enough. With his rear-end still sore from being hit with a slingshot from a passing
car, he put his mind to inventing a product that would give cyclists a right of recourse when things go wrong.
Five years on, with tens of thousands of Cycliq bike cameras being shipped all over the world, we’re only just
getting started on making the roads safer for everyone. Join us.
